Talking to Eurogamer, Chris Lewis, said
I would only say it’s too long if things are stagnating. If developers are finding they’re bumping their heads against the glass ceiling of development scope, if we weren’t bringing revolutionary technology like Kinect, if we weren’t able to, frankly, completely update the UI of Xbox Live without predicating that on people buying new hardware, were those things not true I might be more in agreement with your assessment.

I actually don’t think it’s too long if the experience continues to grow, if people continue to flock to it and they feel like they’re getting great value. That is everything we’re experiencing right now. That’s how I’d answer that.
Continuing:
I’m being charged with more growth this year versus next year. Sure, I chew the back of my hand a little bit when I think about what that means. We had a very good year last year. But, I do also believe there is sufficient in what’s coming and exists right now for that to be a very realistic ambition. We’re not talking about any additional or new generations of hardware at the moment. We’re fixated on what we’ve got going on right now.
Later, when asked whether the Xbox 720 was being researched and developed, he said:
Sure. As you can imagine, of course we’re working on all sorts of different things. We do that all the time. Frankly, in all aspects of Microsoft, not just what we do with Xbox, our R& investment is second to none. But to your point about life cycle timing, we’re in pretty good shape.
As long as hordes of casual gamers continue to buy Kinect, it is clear that Microsoft will continue to support the 360, but with the Wii U out next year, how long can they wait?

I'm not missing a thing. That business model is exactly what disappoints me, as you would have known that I said if you had taken the time to read the whole thing.

The business model shouldn't have anything to do to with you anyway. You're involvement is strictly as an onlooker. So your need for a name is unneeded. you have no access to it. To you it has no name. If you want, call it something else. Whatever you call it is what it is until Microsoft says otherwise.

Why do people think the Wii U is a threat? Seriously its not, it's gonna fail like the 3DS, its just not a major upgrade to the Wii especially if its power is only a little bit better than 2005 tech of the PS360.